Bajaj Auto Reports 19% Growth in Q1 Profit

Key Highlights:

• Bajaj Auto's net profit grew by 19% year-on-year to Rs 1,988 crore in Q1 FY24.
• Revenue from operations increased by 16% to Rs 11,928 crore due to strong two-wheeler and three-wheeler dispatches.
• Total wholesale volume rose 7% to 11.02 lakh units, with domestic and export volumes both increasing.
• Operating profit (EBITDA) grew 24% to Rs 2,415 crore, with the EBITDA margin expanding to 20.2%.
• The electric vehicle segment contributed 14% to domestic revenues, up from 6% in the previous year.

Bajaj Auto reported a 19% increase in net profit for the first quarter of the financial year 2024. During the quarter, the automaker's realisation and profitability rose due to strong volume growth and a stronger mix of higher-margin models. Both revenue and operational profit increased by double digits during the quarter.

The Pune-based company reported a standalone net profit of Rs 1,988 crore in April-June, up from Rs 1,665 crore in the same quarter last year.

Revenue and Sales Growth 

Revenue from operations grew by 16% year-on-year, reaching Rs 11,928 crore. The increase in revenue was supported by high single-digit growth in two-wheeler and three-wheeler dispatches. Bajaj Auto's total wholesale volume, including two-wheelers and three-wheelers, increased by 7% to 11.02 lakh units.

Domestic and Export Performance

Bajaj Auto's total wholesale volume, including two- and three-wheelers, scaled by 7% year on year to 11.02 lakh units in the quarter, with increases in both domestic and export volumes. Total two-wheeler sales increased 7% to 9.51 lakh units, while commercial vehicle volumes increased 9% to 1.51 lakh units.

The electric vehicle portfolio, including two and three-wheelers, accounted for 14% of domestic revenues, up from 6% in the previous year.

While export volume increased by 9%, export revenue saw double-digit growth, with LATAM achieving its highest-ever sales and a rise in the Asian market.

Meanwhile, Bajaj Auto's operating profit, or earnings before interest, taxes, depreciation, and amortization (EBITDA), increased by 24% year on year to Rs 2,415 crore. The operating profit margin, or EBITDA margin, rose by 130 basis points to 20.2%. 

Total expenses in the quarter climbed by 14% to Rs 9,627.12 crore, driven by a 12% increase in the cost of materials and components consumed.

The margin improvement was driven by greater realization and cost reduction, which more than compensated for the drag from the expanding electric two-wheeler sector, according to the company.

Bajaj Auto's net profit increased 3% sequentially, while its operating profit increased 5%. Revenue from operations increased by 5% while total volume improved by 3%.

The company reported selling 19,000 Triumph motorcycles in the first quarter. They exported these bikes to 50 countries to spread their presence globally. In India, they have around 100 showrooms and are planning to increase this number to 150 soon. They are also working on brand promotion and improving their supply chain.

Chetak Expansion Plan

The company is also focusing on expanding the Chetak electric scooter. They aim to have it available in around 500 stores by the end of the quarter. Additionally, they will launch a more affordable version of the Chetak, which will feature competitive pricing, strong build quality, and excellent performance.

Also Read: Electric Three-wheeler L5 Sales Report June 2024: MLMM emerges as the top choice.

CMV360 Says

Bajaj Auto's impressive financial performance in Q1 2024 highlights its strong market position and effective strategy in both domestic and international markets. The company's focus on higher-margin models and electric vehicles, along with its expansion plans, depicts a promising future. However, managing costs and maintaining profitability in the competitive automotive sector will remain crucial.